Best practices for boosting sales in key categories
A new study may have the answers for grocery retailers trying to increase their general merchandise and health and beauty care sales.
According to new research from Acosta and the Food Marketing Institute, retailers should be seizing opportunities to tap growth in the Health & Beauty Care (HBC) and General Merchandise (GM) categories.
“It may come as no surprise that e-commerce continues to be a major challenge for traditional retailers, but the other key trend we are seeing is not as predictable — Millennials represent a larger opportunity for in-store purchases, with higher reported buying rates in grocery stores than any other generation,” said John Clevenger, Managing Director and Senior Vice President, Strategic Advisors at Acosta. “To be successful in increasing GM/HBC revenue, retailers need to create disruption in-store — more than 50 percent of shoppers shop the perimeter of the store weekly, compared to about 20 percent who shop HBC and GM each week.”
According to The Power of GM and HBC in Grocery report, consistencies among top retailers in category growth, strategies employed to increase revenue and tips for growth in these categories include:
Millennials represent a larger opportunity for in-store purchases, with higher reported buying rates in grocery stores than any other generation.
To successfully drive GM/HBC growth, winning grocery retailers:
Promote more often, but not necessarily at deeper discounts. They utilize promotions to drive awareness.
Remain competitive with pricing, matching other channels and beating other grocers.
Top categories for increased HBC sales were: cold/allergy/sinus tablets (11 percent), vitamins (9.8 percent) and toothpaste (5.8 percent).
Top categories for increased GM sales were: culinary (32.3 percent), office products (14.2 percent) and foil pans (12.5 percent).
The 2nd edition of The Power of GM and HBC in Grocery was completed using analysis and custom research conducted by Acosta’s Strategic Advisors, in partnership with FMI.
To read the full report, click here.